Pakistan Moves To Regulate Crypto

Pakistan is taking significant steps to regulate crypto, aiming to attract global investors and position itself as a leader in blockchain-powered finance.

By creating a clear regulatory framework, Pakistan hopes to attract foreign investment and boost its economy.

The country aims to capitalize on its youthful population, with 60% under the age of 30, and its existing crypto adoption rate, which ranks ninth globally.

The establishment of the Pakistan Crypto Council (PCC) is central to this effort. The council, led by Finance Minister Muhammad Aurangzeb, will develop regulatory guidelines, ensure investor protection, and encourage blockchain innovation across various sectors.

The influence of global politics, particularly pro-crypto policies in countries like the U.S. and UAE, has prompted Pakistan to reconsider its stance on digital assets. U.S. President Donald Trump's pro-crypto initiatives have been cited as a significant catalyst for this shift.

Pakistan is also motivated by its financial challenges, including a significant reliance on IMF loans. Legalizing crypto could provide a new revenue stream through taxation of crypto gains helping to reduce fiscal deficits.

Pakistan Crypto Council (PCC) is established to oversee the integration of blockchain technology and digital assets into the financial sector. The council includes key figures from the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan (SECP).

The framework aims to provide regulatory clarity and pro-business policies to attract international investment. It will focus on anti-money laundering (AML) and counter-terrorism financing (CTF) measures while protecting investors.

The PCC will collaborate with international organizations to adopt best practices and ensure compliance with global standards.

An estimated 15 to 20 million Pakistanis are already using crypto, highlighting significant local demand.

By leveraging blockchain for remittances etc., Pakistan can reduce reliance on traditional banking systems and lower transaction fees, creating seamless cross-border payment networks.

Pakistan's move to regulate crypto reflects its ambition to become a major player in the global blockchain and Web3 ecosystem, leveraging its youthful population and existing crypto adoption to drive economic growth and innovation.

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